Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) subsidiary Alon USA Energy Inc. (NYSE:ALJ) swung to profit on sharply higher revenue for the third quarter of 2011, beating the analysts' forecasts. Sales rose to $2.06 billion for the third quarter from $1.25 billion for the corresponding quarter of 2010.
Alon USA posted a net profit of $28.6 million ($0.51 per share) for the third quarter of 2011, compared with a net loss of $15.7 million for the corresponding quarter. Adjusted net profit was $39 million ($0.70 per share), compared with a net loss of $31.8 million for the corresponding quarter. The company handily beat the analysts' consensus of $0.42 earnings per share on $1.92 billion revenue.
Alon USA's share price rose 46.5% on Friday to $11.44, giving a market cap of $639 million. Dor Alon's share price rose 0.6% by mid-afternoon on the TASE today to NIS 31, giving a market cap of NIS 444 billion.
Alon USA president and CEO Paul Eisman said, "Our adjusted EBITDA was $114 million for the third quarter of 2011 which marks our best quarterly results in almost three years."
Alon USA owns refineries in Texas, Louisiana, and California. Unrefined crude oil is used to produce high-quality blended asphalt, using a production patent that combines recycled tires. The company also owns 1,000 FINA brand gas stations and convenience stores, handled through subsidiary Alon Brands Inc.
Alon USA posted an operating profit of $77.4 million from its refining operations in the third quarter, compared with an operating loss of $52.6 million for the corresponding quarter. Although the company's retail fuel sales rose 11% to 40.8 million gallons in the third quarter from 36.8 million gallons in the corresponding quarter, and branded fuel sales rose 12% to 95.2 million gallons from 84.7 million gallons, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) on fuel sales fell to $11.8 million from $12.2 million.
Alon USA reduced its debt by $78 million during the third quarter, leaving an outstanding debt of $1.05 billion, even as its shareholders' equity was just $418 million at the end of September.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2011
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